Crypto hedge fund DeFiance Capital said it was "materially affected" and "prejudiced" by the liquidation of rival fund Three Arrows Capital.
- In a statement published on Twitter on Friday, Singapore-based DeFiance said CEO Arthur Cheong had "no visibility" on Three Arrow Capital's financial statements or conditions. He became aware of solvency problems only when the news broke in June.
- "Arthur Cheong is committed to taking all necessary steps to protect, preserve and recover all assets which are and were owned in the context of DC's business," the company said.
- When concern about Three Arrows' solvency surfaced in June, DeFiance stated that it was “actively working to resolve the situation.”
- The statement on Twitter also details how DeFiance is an entirely separate entity to Three Arrows and that "none of DC's assets under management were raised from 3AC."
- Three Arrows Capital filed for bankruptcy in New York on July 1.
- A number of crypto companies have been hit by the Three Arrows Capital fallout, with Genesis Trading reporting "hundreds of millions" in losses and Voyager Digital filing for bankruptcy after the fund defaulted on $670 million of loans. Genesis is a subsidiary of Digital Currency Group, which owns CoinDesk.
UPDATE (July 15, 11:42 UTC): Adds details from statement, link to tweet, background on Three Arrows' collapse; changes photo.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.